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July 16, 2009

In Tough Times, Success Measures Expands To Meet Growing Demand for Outcome Measurement

Find out more about Success Measures at NeighborWorks America

Community development organizations and their funders invest significant resources each year to prepare low- to moderate-income families for sustainable homeownership, to build stronger communities and improve quality of life for community residents.

But how do these organizations know that they are meeting their ultimate goals? How can organizations and their funders be assured that their investments are generating long-term impact?

In these tough economic times it is more important than ever to answer these questions. Because of the weak economy many nonprofits are struggling to survive as foundations and other philanthropic organizations tighten their belts and shrink their investments.

Two recent studies by Bridgespan Group and Johns Hopkins University confirm that nonprofit organizations are feeling the pinch. In the Bridgespan study, 92 percent of nonprofits surveyed said their financial picture has grown bleak since the recession.

According to the John’s Hopkins study, 80 percent of charities said their organizations were experiencing financial stress, and 40 percent described the stress as severe.

As a result, many nonprofits are focusing on their core programs and being more strategic about how their dollars are being used. Their funders are demanding more rigorous evaluation methods to determine which programs are making a measurable difference.

Some may argue that this economic downturn has reinforced the importance of measuring the impact of nonprofit programs. For more than 10 years now, that’s exactly what NeighborWorks America’s Success Measures program has been doing.

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